On January 1, 2019, Company X issued $550,000 of twenty-year bonds when a market rate was 2%. The annual Interest payment each year is $22,000. What is the carrying value of the bonds after the interest payment on December 31, 2020? Select one: A. $550,000 B. $628,780.90 C. $631,826.11 D. $714,912.34

On January 1, 2019, Company X issued $550,000 of twenty-year bonds when a market rate was 2%. The annual Interest payment each year is $22,000. What is the carrying value of the bonds after the interest payment on December 31, 2020? Select one: A. $550,000 B. $628,780.90 C. $631,826.11 D. $714,912.34

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

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